We are interested in buying a home that is a short sale.

Our realtor wants us to sign an addendum giving the bank a specific date that they need to respond. We have all the time in the world and are willing to wait however long it taked for a deal to go through. We feel like giving them a date they HAVE to respond by will make them respond with a no. Is signing this form of addendum typical in a short sale?

It's nice that you have time and can be patient....both are fine virtues that will help with a "short sale." However, we agree with your agent that it is important to give the lender a time frame in which to operate....The expect it!

If they can't work within your window and they are interested in working with you, you will likely be presented with the opportunity to extend your offer. The important thing is to get the process started before someone jumps in front of you on this opportunity.

Chasing "short sales" can be a difficult and disappointing process....one that will likely test your level of patience. Before commiting to an offer of this nature, you should be focused on collecting information that will help you to evaluate the chances for your success.

Are the sellers working with an attorney? Does the lender appear willing to work with the seller? Is the "asking price" a pre-approved bank price? Are there multiple loans on the property? Any liens? Where are they in the short sale process? Has the lender assigned a loss mitigator? Has an appraisal been ordered or BPO's done? How far are they from "foreclosure?"

Before getting too far into a short sale, one should be involved with calculated risk.....collecting information can only be a good thing.

I just talked to an agent who has been waiting since November 2011 on a short sale!!!! I see them all the time where they are still waiting after 5 or 6 months - do you really want to wait that long. I hear the latest problem with short sales is that the bank does not want to pay the back HOA dues and expects the buyer to do so. Good luck to you.

good luck with that - my daughter tried a short sale outside of Dallas- that market is tied up tight by people that can afford to buy multiple properties and nearly all the affordable housing is bought by them then put back on the market out of an affordable range.
Sad as Dallas area property also has one of the highest property tax rates in the country and a convoluted maze to jump through if some "upstart" just wants to buy a home they can afford.

She wasted several months with her apt lease finally ending and renewed at a much higher amount, the ban involved kept changing the terms and amount - always upward and in the meantime the house which had already been stripped by thieves was broken into squatters lived in it, thieves stole the copper, furnace parts, hot water tank, destroyed the garage door and an unknown amount of other damage. During that time the bank delayed, changed processors, demanded no questions be asked and "reassessed" severall times for an even higher price until she could no longer afford their increasing demands.
DALLAS IS A NITEMARE for affordable housing!!!!

Work with your realtor, dates are important other wise there is no need answer. This allows your realtor work with a bank. Everything including your contract has a date, most of the time it will be the inability of the banks to perform on time and you will be using amendment to set date forward. Banks are not personal, if your offer is not within it's percentage after there has been a brokers price opion they will generally respond with a counter offer. This is generally a slow process work with your realtor. Best of Luck

Steven,
The Short Sale Addenda is a standard form that should be included in your contract. It protects both the buyer and the seller. HOWEVER, the bank will likely not pay any attention to that date. The Addenda says that if the bank hasn't given approval for the sale by that date, then the contract automatically terminates. If the bank has not replied by the date provided, your agent can help you do an Amendment to the contract to allow the bank more time to make a decision.

As others have stated, patience is required in buying a short sale. The bank could take several months to reply with an approval letter - and then you will have 30-days to get everything closed. Communication is key. Make sure your agent is letting the seller's agent know your thoughts on the timeframe (as it may change as you go through the process).

Good luck! I'm sure you will be happy when you finally get to move into your new home!!!
Melissa
Melissa Hailey - North Texas Top Team, Realtors
Coldwell Banker Jane Henry Realtors
214-418-0180
Melissa.Hailey@ColdwellBanker.com

I NEVER have a drop dead date for a short sale "HOWEVER that is how I roll" can't govern how other agents conduct their business practice. Short sales can take forever JUST because you submitted a sales contract does not always mean you would have your offer accepted.

Contact my office today where I can show you many amazing homes work with your family specifications.

Hello Steven,
Yes, the Short Sale Addendum is designed to protect both parties. I usually have my buyer clients put a date 1 day before the anticipated close date which should always be a minimum of 60 days. This addendum can be ammended if bank needs more time. Your agent should be able to keep up with this is they stay in constant contact with listing agent and/or bank if they are also listing property.

Honestly it probably does not matter. I list a lot of short sales and depending on the lender and the people we are working with they can drag on. Honestly they will not even look at that date. I have made offers on short sales for investors with no rush and the dates can sometimes come and go. Just keep everything updated along the way and make sure your agent keeps on top of things.

The bank won't pay attention to any deadline a buyer gives them anyway. I generally write in a deadline of some sort too, but it is only to protect the buyer in the event that they want to move on. Our short sale addendum states a deadline, but also notes that buyer chooses to proceed until written notice is given.

On a short sale the sellers lender will never see the addendum to the contract. They are not a party to the contract You need to ask why is your RealtorÂ® pushing this. I list short sales and I have been waitng for an appraisal update on one for 2 months. This has me frozen in the process as we can not proceed to the next step.